Earnings Call: H1 2021

May 14, 2021

Good evening, everyone, and thank you for joining the Thai Beverage First Half twenty twenty one Results Call. All participants have been placed in a listen only mode. Later, we will conduct a question and answer session and instructions will be given at that time. I will now hand over the call to the presenters, Ms. Nan Phong Anxun Tong Rong Sze, Taibab's Head of Investor Relations and the members of Taibab's senior management team. Thank you. Good evening, ladies and gentlemen. Welcome to Taibara's first half twenty twenty one ended the 31st of March 2021 financial results conference call. First of all, we would like to say sorry for the delay because we have some technical issue, but right now we start to we can resume and we can start the call. I am now for Nasutao Rongshi, Head of Investor Relations. For the call tonight, I will start with a summary of the first half results, then we will open the line for Q and A session with our management team. For the summary of the first half results, total sales revenue of the company for the 1st 6 months ended the 31st March 2021 was 1312 2,52,000,000 baht, a decline of 4.3% when compared to last year. This was due to a decrease in sales revenue of our business segment from the impact of the 2nd wave of COVID-nineteen pandemic in Thailand. Net profit was RMB16,076 million, increased 8.7% compared to last year. This was due to an increase in net profit of spirits and beer business. And due to last year, there was other nonrecurring costs and deferred tax utilization related to beer business restructuring. Although there was a decrease in net profit of non alcoholic beverages business and associates and a change in net profit to net loss on the food business. Taibat's Board of Directors agreed to propose an interim dividend payment of bah3768 1,000,000 or 0.15 baht per share. For the highlights of the first half twenty twenty one results, the company's spurs business was marginally affected by the 2nd wave of COVID-nineteen in Thailand. It generated sales revenue amounting to 63,000 876,000,000, 0.6 percent decrease when compared year on year, and total sales volume recorded by the business declined 1.2% year on year. Nonetheless, net profit still amounted to RMB12,866 1,000,000, an increase of 3.6% year on year. Due to a rise in gross profit and a decline in advertising and promotional expenses. The company's beer business recorded sales revenue amounting to CNY53,978,000 in the first half or 5.1% decrease compared to previous year. Total sales volume decreased 5.3% year on year when including tobacco sales and decreased 7.9% year on year when excluding tobacco sales. However, the company's net profit for the beer business reported a satisfactory increase of 84.2% year on year to RMB2214 1,000,000. This was mainly due to the decrease in distribution costs and administrative expenses. The company's non alcoholic beverage business generated sales revenue amounting to RMB7592 1,000,000 in the first half, down 12.6 percent year on year due to a 14.6% decline in total sales volume. However, excluding non recurring items for other income recorded in the first half of 2020, the non alcoholic beverage business recorded a significant increase in net profit from normal operation of 98.2% year on year due to prudent cost management. Net profit for the period was RMB333 1,000,000. The company's food business recorded sales revenue of RMB5885 1,000,000 in the first half, a 19.9% decrease year on year. The food business was impacted by the 2nd wave of the COVID pandemic in Thailand, which caused concern among consumers about dining out at the restaurants. This was also impacted by the restrictions on restaurant crossing paths in certain areas. Despite efforts to cushion the impact of COVID by enhancing home delivery and takeaway options and by managing costs prudently. The decrease in sales revenue of the food business caused the business to record a net loss of RMB104 1,000,000 in the first half. The company's international business recorded sales revenue totaling RMB29,832 1,000,000 in the first half, down 3% year on year. The revenue for international beer sales declined 4%, mainly due to the decrease in tobacco sales revenue. However, revenue generated by international spirits sales increased by 2% year on year due to significant growth of Scotch whiskey and Chinese spirit sales. We will now open the call for Q and A with our results. Since we are working from home right now, tonight we will have Kunle Cai will be our MC for the Q and A session. Kunle Cai is our Director and Senior Executive Vice President and Chief Operating Officer in Thailand, Car. So now, please go ahead and open the line for the call. Thank you. We will now begin the question and clearly and slowly, so I can respond we can respond to your questions correctly. Thank you. Please start. Thank you. Our first question, we have Pitya Kap from Kiatnakian Prachap. Please go ahead. Hi, Puneja, can you hear me? Yes, yes, Priti. Hello? Go ahead. Yes, Yes, I have just one question. In this quarter, your spirit sales declined almost 3% year on year. I'm not sure if you can give us a breakdown between the sales in Thailand and Myanmar and maybe an update on situation in Myanmar, including your production facility and sales and overall situation? Thank you. This one, I will ask Kun Prapahgon to respond to the questions on Spirit and Myanmar. Prapahgon, please. Crap, continue to take up. All right. This is Prapahgon, Chief of the Spirit Business. The since I understand that on our upload, we also show our quarterly breakdown and it's showing the overall Spirit volumes decline, just a very small single sales volumes in Myanmar declined by mid teen in terms of percentage for the quarter. But in Thailand, our white spreads still continue to grow. The reason why the total volume of spritz slightly declined because we have a decline in brown spritz sale, it's twofold. One is last year same quarter, we actually have price increase. So there's quite a fair bit of volume loading in the Q2 of last year. As for this year, there isn't. But the overall consumption of Browse, you could imagine, given the disruptions in COVID-two in January, and it has impacted the consumptions slightly. So the 2 combined showing the brown spirit in the 2nd quarter coming down slightly. So but overall, as you can see, profitability and EBITDA in both 2nd quarter and the full 6 months have improved in the Spirit business. Actually, that's also helping with our other international business in Scotland. Although they're small, they are improving and we also remain profitable. Just to cover on Myanmar situations, we run Grand Royal Whiskey, the number one whiskey business in Myanmar. We own 75% of this business together with our local partners. The situations as of now, I would say as of now, meaning as of early May, this 1st 2 weeks of May, have improved by a lot. People, if you follow the news in Myanmar, you have seen that in February, there's a lot of disruptions. Banking system shut down and continue to disrupt it through the water festival in early April. So and then in mid April, the water festival basically have a 10 day holiday. So the country gone into more quiet. So, in the 1st 2 weeks of May, the situation today, I must say, it's improved by a lot. And in February, we sold basically, in February March, what we have sold, we have to collect in cash because the banking system is not operational. As of now, we are back to be able to collect money on through the banking system up to 80% of the sale. So remaining 20% still collecting cash. And we are paying our employees in cash because the banking system for the employees are not quite adequate long line at the ATMQ. So in terms of the cash collections, they are back to close to normal. And in terms of logistics, we do no longer have any more logistic backup. We have enough supply, packaging material and everything for us to continue production. We continue to focus on sale and focus on collections and we do not have 18 issue of our receivable and our headline sales generally about 10%, 15% down from normal period. So I think that's hope to give you much comfort as to some impact that we have to take on with the Myanmar ops. Thank you. Great. I have follow-up questions, if I may. Since the situation has improved in May, should we expect improvement in sales as well? Have you experienced any improvement in sales? And then the second question, there are certain listed companies in other countries that set up provisioning against investment in Myanmar. But starting from what you said, I don't think your situation I mean, Grand Royal situation is that severe. Is it fair to say that the risk of provisioning against Grand Royal investment is low? Is it a fair statement? We do not expect to make any provisions as of now to our Myanmar operations. I think the acquisitions that we took on in October 2017, that's actually quite a good size of good views. But we have measured that and we believe the business actually today, the business make more money than when we even bought it. And even with 10%, 15% decline in sales, we're still making a good EBITDA level. So I think, yes, some of the businesses the company. We have to admit that the situation is very difficult there. But as the Chairman of the company, I'm very satisfied with very happy with the outcome. It's a lot better than I expect. We are now trying to even though the sales have some pressure, but we try to sort of maintain our profitability there and the management there is doing well. We have a good management team there and also a good partner there. So I'm still very confident on the DRG or the Mianda business in Q2. Right. Glad to hear that. Hello. Zheechai, I will add in. I would like to add in Kung Weichai and Kung La Pakorn. For the auditors, KPMG, one of the auditors' technicians, they have to check the valuation and the impairment of the investment together with a good deal. Yesterday, we had the Audit Committee meeting. KBNG confirmed by the income approach DCF, they still support our all investments in Taivet and still have no effect for any impairment of the investment or either the goodwill and then to have the goodwill have a headwind to gold. Yes. So, we are not such enough. We have a headwind to who compare to our investment, so no impact anything on this one. I would like to add to that. Right. Thank you, Mr. Sai. That's very clear. Yes. Thank you very much. That's all the questions I have. Thank you. Thank you. Next question please. Thank you. Next we have Nicholas Tai from Credit Suisse. Please go ahead. Hi. Just a couple of questions from me. I wanted to check if you could update us on the beer market share in Thailand and also I guess given the situation now, I wanted to just understand a bit more on what you can do with your marketing and whether you've seen Boonrat react in any way given that you guys have gained more market share from them over the last year or so? And just wanted to clarify one thing on the what was said on the spirits volumes earlier. Am I right in saying that white spirits continue to grow whereas the brown spirits declined a bit year on year. So overall is Thai spirits a bit flat and the decline is more so in the Myanmar side? I will address the second question. So to save time, what are you saying is just correct. Our white spirit is still growing. And then brown spirit, because of its nature, some of them is just consumed on premise, so it's declined. So overall, it's flat, you are correct, in terms of volume. And then but the profitability as good for Paragon as mentioned is still growing nicely. Okay. On the beer questions, I would like Lester to address that, about Thai beer market. Lester, please? Yes, sir. Thank you. Good evening. This is Lester here, heading up the Thai beer business. You talked about the market share and our A and T spending and how the competitor are going to respond. Let me take that step by step. Our market share at the moment now is close to 40%. So while the market has declined, earlier you heard Kunam Phorn give the overview that revenues have come down. The beer market has actually declined by about 10% this year. So while our share is close to 40%, we've actually picked up share during this period over the competitor. And we've done this with reduced A and P spending, obviously, because of the COVID period. So moving forward, do we think that they will pick up their A and P? Hard for us to say, but what we're saying is what we feel internally is that we've done very well picking up share with reduced spending and we would like to keep it that way. So moving forward, we want to focus on the more efficient areas of A and P, spend more on that where we get volume and share returns and cut down on the parts that don't give us as good returns. So moving forward, we expect to pick up more share and reduce spending compared to a year ago. Thank you. Thank you, Esther. Okay. Thank you. Thank you. Do you have any other questions? No, I'm okay. Thank you. Thank you. Next, we have Divya from Morgan Stanley. Please go ahead. Thank you. Good evening, Kanujai. I just had two questions. The first question was just on the raw material and packaging costs. I noticed that it's increased for both the spirits as well as the beer business. Just wanted to get a sense on how you're seeing that going forward? And should we be expecting some price hikes to be taken to offset that? And a question related to that is just if I look at the implied domestic beer ASPs, they seem to have increased a bit year on year. Wanted to get a sense if there's a change in mix in the beer space in Thailand or is it some sort of pricing the hike that has already happened? And then this is the last question is on just the quarter to date trend because last year, April basically had no sales in pyridine for alcohol. But now we are again going into a restriction period. So if you could help us understand on an aggregate basis, quarter to date, what are you seeing in terms of volume trends for both beer and spirits, that would be very helpful. Thank you. Okay. There's 3 questions on the raw materials. On the beer, I will ask Doctor. Piznuth to respond that. And then Spirit, I will ask Kunpaparcon to respond that. In terms of beer domestic ASP, I think Lester can look into it. I don't know whether it's Vietnam or in Thailand, but please prepare. On the third questions, I just respond myself. Yes, you are right, because last year, April, we only sell only 1 week, but this year we have a 4 week sale. So cost is look good. That's all I can say, nothing much. So the third question is answered. Now the first question, Doctor. Pissenu, please? Yes. You are dead right now. The commodities are rise up, skyrocketing. But however, we are so lucky in the way that we have booked the beer malt ahead of the game until next March, okay? So, we are really well set on the key raw material. Also, the hops, we have already booked in advance. Now may I also help Lester to answer you about the packaging cost of the beer production. We are doing not that at all. We are doing something like over 60%, not quite 65% as we target it. But of course, along the year, we will achieve the budget of 65% or a little bit over that for sure to use a returnable bottle. Thank you very much for your question. Thank you. Thank you, Doctor. Vishnu. So, Divya, you asked this question again next March. So, it's okay? And then, I'm sorry, I'm sorry for PACCARAN will respond to your question. Deepa, can you repeat your questions again, please? The raw materials go ahead, Deepa, go ahead. Yes. Okay. So, Sanfropakal, I was just wanting to know that raw material and packaging costs have gone higher. But despite that, the Spirit gross profit margin also improved. So can you just comment on what's driving that improvement? And how should we think about it in terms of April May, if you have any? I know Punn, which I answered, but just wanted to get a sense that when you look at it on an aggregate basis, how is the current sentiment on the volume run rate? Okay. In terms of well, I'll comment it on Thailand, because I think the majority of our spread business over 90% is still coming from Thailand. And in terms of raw material, there's a good there's a bad part. I mean, there's a good part is well, the negative part is there's somewhat higher molasses in good cost. People have seen the new they know that molasses for this crop is a bit short compared to a year or 2 ago. So that's why price is moving up a bit. We have changed some changed the packaging material or changed bottle shape of Hong Kong brow split 700 ml. So we switched to 100% new bottle for the time being. And we will hopefully in the future, we will get more used bottle coming back in about 6 months' time. But the positive side is that the collection of our brown I'm sorry, white spirit bottle, we use because our majority of our volumes in Thailand are actually widespread and bottle widespread bottle for Rongkang, the use rate that we can collect and use are improving, moving to our target range. So these have started to pay off. So these 2 are offsetting each other. That's why we have a good control on costs for these 6 months is compared to 6 months years ago prior to COVID. Actually, COVID has been around with us just about a year. So, I think it didn't really hit Thailand until late March last year. So the 6 months prior year actually have no COVID and therefore we have good spending in terms of A and P. And that A and P has been tightened because we continue to live in this new world of new normal and we have basically used less spending on A and P in both brand and trade marketing. So that's why the 2 combined giving us a higher profitability. Okay. And yes, I hope that explains. Yes. And for Novakon, you don't need to take so there's no need for you to take a price hike in spirits. I mean, is that something that would be considered or it's not required given where your raw material costs are locked in? If there's an opportunity to take price high, I'll take it any day and every day. It's just that the opportunities have to be reviewed. I think we run a very profitable business. But in any cost coach, if there's an opportunity to move price up, that will not impact our long term sales volumes, we will do so. So I think we have certain review. I mean, last year, 6 months last year, we actually took price up on brown spirit prior to COVID. So this year when we look at brown spread 6 month on 6 month, I think the decline somewhat have to do with overbuilding stock from price increase and somewhat decline consumption due to COVID. And it's not really due to price increase. So I think we are quite safe on that. As far as white spirit, we haven't taken price increase for the past 2 years. So you're asking the right question. So we're looking at the opportunities. Okay. Thank you. Thank you, Bob. Thank you for background. Next question, please. Thank you. Our next question is Sundae Ujio from Harding. Please go ahead. Hi, thank you. This is Sundae from Harding Haudenosaunee. Actually, my first question is on raw material cost inflation, which you've answered on the previous question. Thanks for that. But I also wanted to ask a bit more question on Vietnam, Sibeko. Two questions there. First would be on the drunk driving law. I know there's been no mention of it recently, but I wanted to ask if that law is still there and if it's impacting volume trends in Vietnam? Hello. Hi, also sorry that we got disconnected for the Vietnam side. I think the degree 100 is still there. And obviously, it still has an impact, but certainly not as bad as when it was initially implemented in Vietnam. I think people get used to it after a while. Plus, during the current situation, it's very hard to see the impact, especially when the COVID pandemic has shut down a lot of has caused a shutdown on many restaurants and pubs and other establishments in some part of Vietnam. So I think that would be the current assessment. Thank you. Yes. This is Wengai. I think from our experience in Thailand, same thing happened in the beginning. Everybody is so tight. The consumer are tight, really, really excited and the governments are very tough. And after a while, the consumer used to it and the government are losing up a bit. Actually, this is the same thing that I'm seeing now. Thank you. Thank you very much for that. Thanks. That's very clear. The second question is on the new product in Vietnam, Saigon Shield. My last update was that, the launch of last year, you guys had some problems with the channels with competitors trying to block it. Has there been any update on that in terms of being able to address that issue? And how is the reception of that new product been since it's been about 6 to 8 months now that it's been launched? Has it been good? Has it been beyond your expectation or below your expectations? Okay. Ojo, let me check with whether Ben is coming back. Is Ben is there? If not, Ojo, I believe this question when Ben connect back again, okay? No problem, Ojo. Thank you. Thank you, Ojo. Thank you. Our next question is from CIMB. Thank you. We have from CIMB. Hello, everyone. Private Management, can you hear me? Yes, go ahead. Hi, Gunnar Chai. Thanks for the call. Good to hear from you again. I just wanted to check on the A and P, you have done really well in terms of cost control. But I also noted that there was mention of market share coming up despite this A and P not being spent. Can you just give us some color on what you have been focusing on and maybe what the measures have been because previously pre COVID-nineteen A and P was actually one of the biggest things that help to drive this market share. What are the big changes if you could share please? Is it beer or spirit that you're asking? It will be beer. That was Thailand. Okay. Thank you. Let's face your call. After we finish, Bennett will come back. I will ask question to Bennett. Hi. Hi, Susan. This is Lester here. Hi. That's a really good question. What Brexit done obviously because of COVID, a lot of the big events were canceled or postponed, mainly canceled, especially at the end of the year, the December period. In the December period, there are a lot of beer parks and lots of festivals going on. And also during the cool season, lots of music festivals going on. So all those were canceled or postponed to a later date, probably next year. So big savings there. So what we did actually is to use the money for distribution. What we try to do is to improve our distribution and therefore getting the sales. At the end of the day, it's a lot of sales driven activities now rather than the big events and big mega events to build the brand. Okay. Because I remember I see. In the last call, I think there was some talk about Vans going around and all. I can't remember whether that was more for spirits or the beer side or is that across the board in Thailand? Is that one of these distribution measures that you are referring to? The distribution that we're doing is more area management. So we get very focused into selling into outlets, selling into outlets first and then if we already sold it to improve the sales per point of distribution. So it's really down to at each particular individual area around the country, our guys are pushing out and getting more distribution, getting more sales per point of distribution. Okay, got it. So the big effect for sales really is to get our stock out there. So when we increase our stock rate, the volumes go the sales volumes go up, and that's what we've been pushing on. Okay. Got it. Thank you. I'd like to add that because I think there are 2 war for both Beer Spirit, the off trade war and the on trade war. The off trade, because of the COVID, we stopped because I think we have to admit that the off trade, the more you spend money, the more you win and let the competitors spend a lot of money. But on the off trade, we are very strong compared to the competitors. We have R1200 cash rand running around the country, covered about 300,000 outlets out of the 450 universe. And then when COVID happened, people are moving back I mean, workers are moving back to their home. So they're going to the upcountry, which will actually we are very strong in that area. We are lucky to increase the number of cash rand, 200 cash rand last year on time with the COVID coming in. So I think that is the advantage and benefit that we get on the beer side. Okay? Got it. Thank you. So I would like to go back to Ojo's questions since Bennett is here already. Good. Bennett Ojo asked about you to give a color on the new product on your Simon Chew? Would you give the response to OZYO, please? No, you asked during our quarterly briefing just about a week ago, right? And my answer is still the same. It's within our expectation, but we think that you can grow even faster and that's why we invested a little bit more in the Q1 of the year. That's why you see selling expenses in the Q1 increase. So in short, I think it's within expectation. We think it can improve and we're investing more in the brand. Okay, clear. Thank you. Thank you. Thank you. Is there any follow-up questions, Mr. Chen? Thank you. Okay. Thank you. Our next question, we have Pramada from UBS. Please go ahead. Hi, good evening. Thank you for the opportunity. My first question is in mid April, I read from the local papers that the government was In mid April, I read from the local papers that the government was talking about potentially increasing excise and introducing new tax measures like for new products like hemp drink and also tax for existing categories like alcohol. Any color on that in terms of alcohol. Any color on that in terms of the latest thinking from the government? Do you read from the local newspaper what country? Thailand. Oh, Thailand. Oh, Thailand. Oh, I'm in Thailand. So let me respond to that question. I think the government is not busy with the pandemic. They're always talking about tax, right? That's quite normal. But I mean, we didn't hear anything yet. Normally, we will hear things 2 or 3 months ahead. At the moment, I can say, I have to say that we haven't heard anything moving on that path yet, but I cannot guarantee that the cost will not increase because at the end of the budget year, they probably discussed again the budget year here is in September. And this year, they spent a lot of money on the COVID pandemic things. They may talk about it, but I didn't hear anything yet. I didn't hear anything on the spirit or other alcohol yet. I mean, in response to that, I think, Kutzapeno previously was also mentioning that as increasing prices as part of an excise management strategy, is management going to try to increase prices ahead of potential excise increase? No, no, because right now the tax systems is based on the price percentage on price. So the minute you increase, then the tax increase. That's why I believe that because of the new system now based on your retail price, the government will not increase the tax in term of rate very much because the minute you increase your price, your tax is coming in. So, that's what I think what we do. One thing we can assure you that anything happened on the tax rate or tax rate, our policy is to maintain the margin percentage, not even the absolute margin in baht, the margin percentage, which means that if the tax increase 10 baht, we probably have to increase like 14 baht to cover the margin. So that's been practiced during the past 16 years that I'm in this company. Thank you. Thank you, Khunija. And second and last question, with the deferral of the potential BR IPO, are there any other sort of potential strategic actions that management is exploring to maximize shareholder value? I mean, previously in 2019, couldn't help. I know he was saying that he was open to collaboration with international brewers, partly the rationale to look at opportunities to deliver as well as knowledge transfer, product capabilities transfer, and those rationales continue to hold. Are there any sort of other measures that you'll continue to explore to crystallize value? I think what Kuntapanas has mentioned earlier is covering everything and we're still exploring that seriously because we're still open for any opportunity coming in. And then for the shareholders, I think we will make sure that we can enhance the shareholder value anytime there is an opportunity. That I can respond for quintup or not like that. Thank you. Thank you. Thank you so much and all the best for the quarter ending June of course and hope the situation improves in Danco. Thank you. Thank you. Thank you. Thank you. We need that. Thank you. Our next question, we have June from Goldman. Please go ahead. Hi. Good evening, management. Thank you very much for the opportunity. Firstly, it's a housekeeping question. I just want to clarify for Spirit. Just now we mentioned about the roughly flat volume for domestic spirits and mid teen kind of decline in the Myanmar side of volume. Was it referring to just the March quarter itself or is it a 6 months performance? That's my first question. It's both. We'll have about mid teen decline for the 6 month period. Right. So both the quarter and the half year, the 6 months is both the performance similar like flat and mid teens, flat for domestic The Q1 declined due to COVID. There was some COVID problem also leading to the election and the second quarter have to do with the change in political environment. Okay. Right, understood. That's for Myanmar, right? Yes. Right. Okay, got it. So, okay. So, I wonder if the domestic ones, if possible that you could kind of break it down for us for the December quarter and March quarter? Is the volume quite similar or flat year on year for both quarters? I think it is flat. Our 6 month domestic volume in Thailand is flat. I mentioned that there's a decline in brown and the a decline in brown and the increase in white, but very low though. So our overall 6 month number remains about flat compared to last year. Okay. Okay. Thank you very much. And my second question is on the Beard side. I do notice that the overall Beard in the March quarter itself in terms of the gross margin, there is a slight decline year on year. So just now I know that management has elaborated, but it seems to suggest that our gross margin are pretty robust, but I just wonder what has been causing some of this gross margin decline in the year. So it looks like tobacco's gross margin is actually expanding year on year. So I wonder whether that implied that the domestic gross margin is under a little bit of pressure on a year on year basis? You referred to Thailand or Vietnam? Beer. Beer overall beer. Actually, we only have the overall beer. Yes, overall beer, we only have overall beer gross margin number. So we can only kind of imply what should be the domestic. So it will be good to have more color, yes, on the domestic side. On the gross margin, Kunan Point, did you notice that? You know the reason? I think Kun Weichai, I think the main reason for it is I think Gautam, if I know, he'd allude to it that our target bottle recycling rates will not hit yet, although we are heading that direction. So less usage of bottles, plus there's some slight increase in some raw materials raw material costs as well. Okay. Thank you, Michael. Thank you. Okay. Yes. My last question The returnable usage percentage will be increased. For sure, Don't worry. Okay. Go ahead. Your last question. Okay. Got it. Yes, like last question is on the in terms of the debt management. I understand that we refinanced the bonds with some bridging loan. I wonder the bridging loan in terms of the average interest cost, what it is versus the bonds that we pay down? Yes. So it would be great to have some color on that. Thank you. This is Kun, Citi Tsai. Can you respond to this question and Bob can support? Yes. Citi Tsai speaking. So our debt bill on March this year, total RMB42,800,000,000, Average cost is about 2.5 percent per annum. But our bidding loan, our bidding loan, 2 year bidding loan, next EBITDA on March this year, we do another 2 year. Average cost, average indebted, that's about 1.7% only. I see. Thank you very much. Thank you. Thank you. Thank you. Thank you. I think there should be no more questions. Now, Poon, you can thank the tenants, please. Serena, then we can close the section. So thank you everyone for joining TYBES conference call tonight. If you have more questions, please feel free to contact IR department at irtaiveth dotcom. Thank you and have a good night. Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.